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Russia to Go Through Pharmaceutical Collapse by Year-End
Most of small pharmaceutical chains, including all discounts, will probably close by this year-end. As to the big players, they will have to wind up their drugstores in downtown Moscow and streets of highest prestige, says the annual report of DSM Group.
“We will have to economize, including on the lease of image premises, somewhere in Tverskaya,” DSM Group General Director Alexander Kuzin said, blaming it on the global financial crisis that curtailed development spending and narrowed the interest of biggest players to regional chains.
According to Kuzin, the truly difficult time will come for small pharmaceutical chains of 10 drugstores to 20 drugstores that were set up for future sale. They won’t find buyers in today’s environment and have to close. But the people have got used to low prices and finding replacement won’t be easy. Compared to other stores, the price difference is sometimes 50 rubles to 100 rubles.
The conclusions of DSM Group are challenged by Pharmexport Marketing Director David Melik-Guseinov. The current slowdown is only an intermediary stage and the development will continue till the chains own 80 percent of all drugstores by 2010. After it, the retail will turn into the key force on the pharmaceutical market with distributors depending on it and the prices for medicine will go up, Melik-Guseinov forecasted.
www.kommersant.com
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